Case
Securities and Exchange Commission v. Tiger Asia Management, LLC, Tiger Asia Partners, LLC, Sung Kook (a/k/a BILL) Hwang & Raymond Y.H. Park
FEDERAL COURT IN NEWARK, NEW JERSEY
2012-264
This case is about insider trading, which was publicly released to by the Securities and Exchange Commission official website on December 12, 2012. Sung Kook “Bill” Hwang, the founder and portfolio manager of a New York based hedge fund, Tiger Asia Partners and Tiger Management, committed insider trading by short selling three Chinese bank stocks based on confidential information they received in private placement offerings. Hwang and his advisory firms then covered the short positions with private placement shares purchased at a significant
…show more content…
Hwang agreed to those terms. However, he still ordered Park to make short sales in each stock in the days prior to the private placement. Hwang and his firms illegally profited by $16.2 million by using the discounted private placement shares they received to cover the short sales they had entered into based on inside information about the placements.
The SEC further alleges that on at least four occasions from November 2008 to February 2009, Hwang and his firms, with Park’s assistance, attempted to manipulate the month-end closing prices of Chinese bank stocks publicly listed on the Hong Kong Stock Exchange. These stocks were among the largest short position holdings in the hedge funds’ portfolios. The more assets the hedge funds had under management, the greater the management fee that Tiger Asia Management was entitled to collect. So Hwang directed Park to place losing trades in order to depress the stock prices, which would inflate the calculation of the management fees. Hwang and Tiger Asia Management made approximately $496,000 in fraudulent management fees through this scheme.
Discussions
1. Who are the parties?
The Plaintiff in this case is U.S. Securities and Exchange Commission. And the defendants are Tiger Asia Management, LLC, Tiger Asia Partners, LLC, Sung Kook Hwang (a/k/a BILL), and Raymond Y.H. Park (Tiger Asia Parties).
2. What laws are involved ‐ statutes and/or common law? What are the
This case was brought forth by Schwab on January 7, 2013 and there has been no ruling issued in
When assessing the economic damage to due to Paul Thayer and those that he tipped off about the acquisition of Campbell Taggart, it should be noted that some argue that this kind of insider trading circulates information and forces the stock to its “true value.” If we assume this argument to be flawed, then part of Anheuser-Busch stock dip after the announcement was due to the insider trading and the fact Anheuser-Busch probably paid more to acquire its target. Thayer and his friends trade the Campbell stock for nearly a month before any public announcement of the merger. On July 27 nearly half the volume was insider volume controlled by those individuals who were in violation of rule 14(e)-3 (See exhibit 2). The increased volume might
Overview of the Case: The Securities and Exchange Commission claims Mark D. Begelman misused proprietary information regarding the merger of Bluegreen Corporation with BFC Financial Corporation. Mr. Begelman allegedly learned of the acquisition through a network of professional connections known as the World Presidents’ Organization (Maglich). Members of this organization freely share non-public business information with other members in confidence; however, Mr. Begelman allegedly did not abide by the organization’s mandate of secrecy and leveraged private information into a lucrative security transaction. As stated in the summary of the case by the SEC, “Mark D. Begelman, a member of the World Presidents’ Organization (“WPO”), abused
Witnesses for the complainant: Anatoly Zlatokrasov, owner of AZTE, Steven, Pinkow, Joshua, Teodor Epelbaum, owner of AZTE, and Andrei Lissenkov, owner of Livox and JCP Autos.
Even though the information about PIPEs was material inside information, Mark Cuban was not accused as traditional insider information. To qualify as traditional insider trading, there must involve true insiders buying or selling the company’s stock based on material inside information.
Ling Nan ZHENG, Ren Zhu Yang, Yun Zhen Huang, Wen Qin Lin, Sai Bing Wang, Ye Biao Yang, Cui Zhen Lin, Rong Yun Zheng, Hui Fang Lin, Xiu Ying Zheng, Jin Ping Lin, Hui Ming Dong, Yu Bing Luo, Sau Chi Kwok, Sai Xian Tang, Yi Zhen Lin, Rui Fang Zhang, Mei Juan Yu, Mei Ying Li, Qin Fang Qiu, Yi Mei Lin, Mei Zhu Dong, Fung Lam, Xiu Zhu Ye, Sing Kei Lam, and Xue Jin Lin, Plaintiffs-Appellants, v. LIBERTY APPAREL COMPANY INC., Albert Nigri, and Hagai Laniado, Defendants-Cross-Claimants-Appellees, Ngon Fong Yuen, 88 Fashion Inc., Top Five Sportswear, Inc., S.P.R. Sportswear, Inc. and 91 Fashion, Inc., Defendants, Lai Huen Yam, a/k/a Steven Yam, 998 Fashions, Inc. and 103 Fashion Inc.,
Case Study of case 69 A.D.3d 413: Yun Tung Chow vs. Reckitt & Colman, Inc.
M international (M) and W Inc (W) decided to enter a long term litigation, due to a patent rights violation. M being the demandant and W the respondent. Not enough information was provided in relation to the charges or the patent.
On May 26, 2016, the United States Court of Appeals for the Eleventh Circuit in SEC v. Graham, No. 14-13562 (11th Cir. May 26, 2016), reached an important decision. The court extended the reach of 28 U.S.C. § 2462, the five-year statute of limitations for “any civil fine, penalty, or forfeiture” applicable to enforcement actions by the Securities and Exchange Commission (“SEC”). The court held that SEC enforcement actions for declaratory relief and disgorgement were subject to the five-year statute of limitations. The Eleventh Circuit built its ruling on top of a decision by the Supreme Court, Gabelli v. SEC, 133 S. Ct. 1216 (2013), which held that 28 U.S.C. § 2462 applied to SEC civil penalty actions.
Case Analysis: Blanchard Importing and Distributing Co. Inc. (HBS Case 9 - 673 - 033)
This particular case, involving the SEC, Coopers & Lybrand, and California Micro Devices, Inc. encompasses charges for neglecting to comply with auditing standards. The Securities and Exchange Commission makes these charges against Michael Marrie, audit partner, and Brian Berry, manager, of Coopers & Lybrand. There are three main areas in which the auditing standards were not in compliance, a write-off of accounts receivable, confirmation of accounts receivable and sales returns and allowances. The Securities and Exchange Commission make these accusations against Michael and Brian for failure
The primary figure in the case is Charles Foley, VP of a computer retailing firm Sayer Micro World and the case is to be analyzed through his perspective. Foley, together with his Director
Insider dealing has been affecting the efficiency of stock markets in different places like United States, United Kingdom and Australia. Hong Kong is of no exception. Basically, insider dealing refers to the trading of a corporation’s stock or other securities by individual with potential access to non-public information of the company. The law of insider dealing in Hong Kong provides a much more detailed definition and is very comprehensive. However, when it comes to enforcement, it seems not very effective. In the following, the law of insider dealing in Hong Kong will be summarized. After analyzing the comprehensiveness of the law, the underlying reasons of the difficulty in enforcement will be identified. Some
Investors that took the biggest losses, which was in the billions, because of this scheme are named in the Wall Street Journal; among them are Fairfield Greenwich Group, Tremont Capital Management, Banco Santander, Fortis, and many others.
Case Analysis: Blanchard Importing and Distributing Co. Inc. (HBS Case 9 - 673 - 033)